Middle East — 2026-05-31

Treasury Secretary Bessent Announces New Sanctions Targeting Strait of Hormuz Operations Under Operation Economic Fury

BLUFOFAC's FTO-linked designation of the PGSA exposes any entity paying strait transit fees to secondary sanctions risk, and Iran terminating the tolling regime by August 31 is very unlikely absent a broader nuclear deal.

OFAC designated Iran's Persian Gulf Strait Authority (PGSA) on May 28 under E.O. 13224, the counterterrorism authority, for providing material support to the IRGC 1. The PGSA, established earlier this month, requires vessels transiting the Strait of Hormuz to submit navigation information and pay fees, with those funds funneled to the IRGC; the Treasury release states that complying entities may be exposed to sanctions risk for effectively providing services to a designated Foreign Terrorist Organization 12. Secretary Bessent separately warned Oman against participating in any tolling arrangement, threatening to "aggressively target" any actors facilitating strait tolls directly or indirectly 3. Iran's Foreign Ministry disputed the toll characterization, with spokesperson Esmaeil Baqaei stating the fees cover navigational services and environmental protection, according to UPI 2.

Analysis
Designating the PGSA under E.O. 13224 converts toll compliance into FTO material support, exposing shipping firms, insurers, and sovereign actors to OFAC secondary sanctions regardless of payment labeling. The Oman warning extends that perimeter to U.S. partners, foreclosing any joint tolling arrangement. Iran dismantling the mandatory navigation requirements before August 31 is very unlikely. Tehran's "navigational services" framing signals intent to maintain the structure, and IRGC revenue dependence under sustained Economic Fury pressure forecloses unilateral concession absent a nuclear settlement. Confidence is moderate, grounded in consistent Iranian positioning and documented IRGC revenue need, with nuclear negotiations as the open variable. The PGSA may instead function as a negotiating chip held for concession if talks advance. Shipping insurers and banks must treat that prospect as low-probability and halt PGSA-compliant operations to avoid secondary exposure.

4 sources

Economic Fury Targets Iranian Maritime Extortion - U.S. Department of the Treasury
U.S. sanctions Iran's new Hormuz authority amid strait talks - UPI
Scott Bessent Announces New Sanctions Targeting Strait Of Hormuz-Related Operations - Vision Times
Strait of Hormuz authority sanctioned by US Treasury Department - The Hill